KEY POINTS:
MELBOURNE - Australian stocks have marched back over the 6000 mark for the first time in almost six weeks, with gains across the board and particularly in industrial and resources stocks.
At the 1615 AEST close, the benchmark S&P/ASX200 index was 97.6 points higher at 6013.4, while the all ordinaries rose 89.4 points to 5997.6.
At 1617 AEST on the Sydney Futures Exchange, the June share price index contract was trading 106 points higher at 6064 on a volume of 21,219 contracts.
"It's been an exemplary run today and certainly a very strong recovery against yesterday's all-day selloff on the back of interest rate concerns," Macquarie equities adviser Helen Spencer said.
"We seem to be putting that behind us at the moment and getting a bit more comfortable with the interest rate scenario that we're facing sooner rather than later."
Ms Spencer said that the new reporting period was helping overall sentiment.
"Overall, the fact that it's the beginning of the quarter is certainly not hurting things, a bit of confidence coming through and a positive lead from offshore," she said.
"The jitters of a potential rate hike have melted away.
"A new influx of funds (are) coming back into the market and it is across the board."
Ms Spencer pointed to industrials and resources as key sectors today.
Among resource plays, the world biggest miner BHP Billiton closed 74 cents higher at A$30.09, while rival Rio Tinto added A$1.70 to A$78.90.
In the industrials sector, highlights were Leighton Holdings, climbing A$1.08 to A$34.68, and Toll Holdings, swelling A$1.04 to A$21.19.
At 1633 AEST the price of spot gold in Sydney was 20 US cents lower at US$663.90 per fine ounce.
Gold miners shrugged off the blip, Lihir Gold adding one cent to A$3.21 and Newcrest Mining lifting 47 cents to A$23.80.
Among key news of the day was Wesfarmers grabbing a substantial stake of Australia's second-biggest retailer Coles, effectively setting a floor price for the company and kicking off its sale process.
Coles and Wesfarmers were both placed in trading halts today.
Coles last traded at A$16.11 and Wesfarmers last traded at A$36.91.
Elsewhere in the sector, Woolworths picked up 65 cents and David Jones found six cents to A$4.65.
Banks also had a positive day, Commonwealth improving 73 cents to A$50.33, NAB was 68 cents richer at A$40.70, ANZ firmed 25 cents to A$29.65 and Westpac advanced 20 cents to A$26.10.
The local bourse was given a leg up by the Wall Street, with US stocks ending slightly higher on Monday as a new round of takeovers led by a AUS$29 billion buyout bid for First Data Corp fuelled optimism about stock valuations.
The Dow Jones industrial average was up 27.95 points, or 0.23 per cent, at 12,382.30. The Standard & Poor's 500 Index was up 3.69 points, or 0.26 per cent, at 1,424.55. The Nasda Composite Index was up 0.62 points, or 0.03 per cent, at 2,422.26.
Media stocks continued making gains as they head towards the implementation of new media cross-ownership laws tomorrow, with PBL advancing 25 cents to A$19.85, Fairfax finding 14 cents to A$5.14, News Corp ahead 13 cents at A$30.52 but its non-voting stock shed eight cents to A$28.59.
Telecommunications giant Telstra was another loser, dropping four cents to A$4.58, but national carrier Qantas added three cents to A$5.19.
The most traded stock of the day was Jervois Mining, with 99.35 million shares worth A$2.16 million changing hands.
Jervois is a minerals exploration, development and mining company with nickel/cobalt laterite, gold and scandium projects.
Preliminary market turnover was 1.63 billion shares worth a combined A$5.27 billion, with 698 companies ending higher, 517 ending lower and 321 unchanged.
- AAP